This chapter is from the book

There's plenty of room for creativity in business. Identifying
opportunities requires some imagination, as does coming up with solutions for
problems. And most of all, it takes a creative mind to put yourself in the other
person's shoes.

Imagine you're an investor and a moviemaker approaches you for some
cash. The moviemaker has no business card, no business plan, no script, and
isn't even wearing a clean shirt. How can you take this person
seriously?

As a producer, you're not just representing your project. You're
representing yourself, your skills, your company, your future, and everyone
working for you. You need to be professional. Professional doesn't
just mean wearing a business suit and carrying a briefcasealthough in some
instances, that's exactly what you need to do. Professional is an attitude:
You care about your potential partner's needs. You don't want to waste
his or her time, so you've done your research, developed a business plan,
consulted an attorneyin short, you've taken care of business.

Coming in prepared makes an excellent impression, one that says this
investor, distributor, writer, or name actor can expect a fair, and potentially
lucrative, business relationship with you.

There are a lot of business details that need to be taken care of in the
development stage, such as forming a production company, drafting contracts,
contacting possible buyers, and so on. It can be frustrating because you really
just want to make a movie. But don't skip any of these details. You'll
be happy you've taken care of them all in the midst of production.

You Have the Right to an Attorney

I've worked with the same entertainment attorney, Neil Sussman, since
1996. In addition to knowing his business and the entertainment industry,
Neil's smart, ethical, and has a cache of very bad lawyer jokes. Every time
I hang up the phone after speaking with him, not only do I understand the issues
and options of a specific contract or agreement, I'm reminded to think
ahead and be clear about what I want. I also have another horrible joke to tell
at cocktail parties.

You need an entertainment attorney. Do not ask your Uncle George the
litigator or your neighbor Louise who works in tax law. Get somebody who knows
his or her way around the entertainment minefield.

An entertainment lawyer can play a key role in helping you attach private
investors to your project. They often have contacts with groups of investors who
want to invest in motion pictures for tax-related purposes.

Entertainment lawyers are also crucial in equipping you with the contracts,
agreements, and releases you're going to need for your project. Get them
now while in development to give yourself time to read and understand every
clause and provision. It's incumbent upon the producer to have and
understand the correct contracts.

Your lawyer will also help you negotiate options on literary properties, as
well as offers you get from distributors or other buyers.

To find a good attorney in your area, ask other moviemakers. You can't
underestimate the power of a recommendation. Many bar associations have lawyer
referral services to help you find an attorney and you can always ask lawyers
you know. Check the listings from your local city or state film commission.

I also recommend Mark Litwak's Dealmaking in the Film and Television
Industry: From Negotiating to Final Contracts as a guide to the various
legal instruments you're sure to run across. Litwak also has an excellent
Web site at
http://www.marklitwak.com.
For more listings, see Resources. When you meet with an attorney, ask

How long have you been in practice?

When did you begin focusing on entertainment law?

Have you handled motion picture contracts before?

What professional organizations do you belong to?

What markets, festivals, and other industry events do you
attend?

Check the local bar association and Better Business Bureau to see whether the
attorney has had any complaints. To be doubly careful, check the county
courthouse for any legal action taken against the lawyer or law firm. What
you're looking for are the number of lawsuits and their outcomes, and what
the attorney is alleged to have done.

The lawyer will undoubtedly ask you some questions about what your goals are
and what your expectations are regarding hiring an attorney. Many have a
one-page agreement explaining your obligations as a client that you may have to
sign and another page describing what the attorney will try to do for you. You
may have to give the attorney a retainer. Don't sign anything or hand over
any money until you're sure this is the person you want to work with.

Personal chemistry and common ethical outlook play a part in this
relationship. Pay attention to your gutif you don't feel this is
someone whose counsel you can trust, keep looking.

In the meantime, review the sample agreements in this book. Modify the forms
as needed, and then take them to your lawyer to be vetted. Depending on your
project and production company business structure, you may need other contracts,
agreements, releases, and letters in addition to these:

Development

Partnership agreementA written statement defining any partnership
you form with anyone else for your project or company.

Option and option execution agreementsAgreements to remove a
literary property from the market while you develop your project. After
development is complete, you execute an option to fully and legally license the
audiovisual rights of the property.

Shopping agreementSimilar to an option, but more informal, this
agreement allows a producer to shop a literary property for a short period of
time without defining compensation or any other terms.

Screenplay submission agreementAn agreement signed by someone who
sends you an unsolicited screenplay or treatment that he or she won't file
a claim should you produce a similar movie without the writer's
participation.

Life story releaseMore extensive than the personal release, this
release generally applies to people who are the subject of a nonfiction motion
picture. Get this signed immediately.

Product placement agreementThis agreement grants you permission,
and sometimes money, to use a product in your show. If you want a product
placement agreement, get your script in shape and reviewed. Approach the
manufacturers early. They'll want to review your script before agreeing to
anything.

Trademark releaseGo through your script one more time to see
whether there are any props or items in set dressing for which you'll need
a trademark release. Contact the trademark owner for a release. The owner may
want to review the script ahead of time, so do this early.

Screenwriting agreementA contract to hire a writer to write a
screenplay.

Nondisclosure agreementAn agreement that goes to potential
investors, subcontractors, and others, where they promise not to discuss the
project with anyone except their advisers. Some writers will insist on a
nondisclosure agreement before pitching to you. If so, walk the writer out to
his or her car and wish him or her a pleasant drive home. Demanding this level
of nondisclosure is a sign of the writer's inexperience and that may cause
you problems later.

Attachment letter or letter of intentAn informal one-page note that
states an actor, director, executive producer, or anyone else will consider
working on your project with you. It binds the person to nothing, but it's
proof to potential investors that you've at least been talking with these
people.

Preproduction

Talent and crew contractsAfter you've hired people, get their
names on a contract defining compensation and other terms.

Personal releaseIf someone walks into a shot and is identifiable,
you'll have that person sign this release allowing you to use his or her
image, voice, and so on.

Location releasePermission to use private property or an exterior
of a public building.

Postproduction

Master Recording License agreementAn agreement granting you access
and permission to use a specific audio performance.

Sync Rights agreementAn agreement granting you the right to
synchronize music to picture.

Soundtrack Licensing agreementAn agreement granting you the right
to use a recording as part of a soundtrack album or collection.